A $289 billion backlog. That's the number that really sticks from RTX Corporation's second-quarter report, which sent the stock up 5.8% in premarket trading on Thursday, July 24, reaching that level by 6:21 a.m. ET.
Q2 non-GAAP EPS came in at $1.89, beating the Wall Street estimate of $1.66 by $0.23. Revenue landed at $24.7 billion, up 14.5% year-over-year and $1.82 billion above the consensus of $22.88 billion. Organic growth ran at 16%. Free cash flow for the quarter hit $2.9 billion, with operating cash flow at $3.5 billion.
The company raised its full-year 2026 EPS guidance to a range of $7.10 to $7.25, up from the prior $6.70 to $6.90, and above the $6.92 analyst consensus. Revenue guidance moved to $95 to $96 billion from the previous $92.5 to $93.5 billion. Organic sales growth is now expected at 8 to 9%, compared to the earlier forecast of 5 to 6%. Free cash flow guidance was also bumped up, to $8.50 to $8.75 billion.
That $289 billion backlog, a 22% jump in a single quarter, breaks down to $170 billion in commercial orders and $119 billion in defense contracts. CEO Chris Calio described the company as "exceptionally well positioned to drive continued growth" as it works through the pipeline and expands capacity.
On valuation, RTX trades at a P/E of 36.56, well above its historical median of 27.4. GuruFocus flags it as significantly overvalued on their GF Value model. Insiders sold roughly $43.86 million in stock over the past 12 months, with zero buys in the same window. The GF Score sits at 84 out of 100, and the Piotroski F-Score of 8 suggests the balance sheet is in solid shape heading into the second half of 2026. Market cap is approximately $262.44 billion.
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